AlixPartners 'Farewell SaaS' Report: Mid-Market Enterprise Software Faces Existential Squeeze Over Next 24 Months

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AlixPartners published a definitive analysis predicting that mid-market enterprise software companies are caught in a 'big squeeze' — pressed on one side by nimble AI-native entrants that replicate applications at a fraction of the cost, and on the other by tech giants investing billions in the AI arms race. The report predicts hybrid pricing models will comprise 40% of software revenue by 2026 and that many mid-market companies will struggle to survive the next 24 months. Historical precedent: the on-prem to SaaS transition drove 4-6x revenue multiple increases; the SaaS-to-AI transition will do the same for survivors.